Best Mutual Funds to Invest in 2022

Best Mutual Funds to Invest in 2022

Mutual funds are the best source of building your wealth without knowing the stock market. You can achieve your long goals like a dream home, retirement corpus, dream vacations, etc. But, there are multiple types of mutual funds available in India, which are regulated by SEBI (Security Exchange Board of India). How to pick the best mutual funds to invest in?

Few funds perform, few don’t perform. Therefore, every investor must validate multiple parameters before choosing the mutual fund that suits their investment goals and risk appetite. Fincareplan is interested in simplifying the process for investors, as we bring the best mutual funds to invest in 2022 for various types like Equity, Debt, Hybrid, Sectoral, and GILT Funds.

Keep reading till the end as the values you get are immense, and it can help choose the right mutual fund. The Mutual funds are chosen on the following basis,

  • AUM (Asset Under Management)
  • Performance (minimum 5 Years)
  • Volatility against the Index, and Risk vs Category
  • Expense Ratio.

In this article you will be going through the two top mutual funds in India from each categories, this pick ain’t chosen only on the basis of performance, as we will be having another article on the mutual funds based only on performance.

Best Mutual Funds to Invest in India

As we mentioned earlier, there are multiple types of mutual fund schemes available in India. So, this article will be a mixture of top-performing mutual funds from various categories like Equity, Debt, Hybrid, Flexi funds, GIlt, etc.

Axis Bluechip Fund Direct plan Growth

This fund is one of the top picks under the Large Cap Mutual Funds category. It is of the best mutual funds to invest, as the fund nears 10 years of completion. The fund was started in January 2013, and since its inception, it has had an ultimate performance of  16.49% CAGR. The benchmark index for the fund is S&P BSE 100 India TRI

Here are the Stats, why we ranked them as the best mutual funds to invest in 2022

  • AUM (Asset Under Management – Rs. 34182 Crores
  • Expense Ratio – 0.48%
  • 5 Years Performance – 18.93%
  • Percentage of Equity Holding – 95.9%
  • Risk vs Category – Low

Axis Bluechip Fund Direct plan growth has an asset allocation of Equity (95.9%), Debt (4.5%), and Cash (-0.4%). The equity portfolio consists of various sectors like Financial (37.8%), Technology (21.6%), Services (10.5%), Healthcare (6.5%), Construction (6.1%), Others (17.65).

Here is the Risk Ratio of the Fund:

  • Standard Deviation – 17.59 vs 21.45 (Index)
  • Sharp Ratio – 0.89 vs 0.69 (Index)
  • Alpha – 4.22 vs 7.91 (Index)
  • Beta – 0.78 vs 1 (Index)
  • R2 – 89.37 vs 46.23 (Index)

Other Details of the Fund:

  • P/E – 38.61
  • P/B – 5.22
  • Top 5 Equities hold 43% of AUM
  • Top 20 Equities hold 85% of AUM
  • Exit Load – 1 %if redeemed within 1 year
  • Stamp Duty – 0.005%
Pros
  • 5 Years Performance is highest among the category
  • 16.49% returns since Inception
  • Expense Ratio is 0.48%
  • Low risk compared to the Category
Cons
  • Last 1 Year returns was low compared to category average

Mirae Asset Large Cap Fund Direct Plan Growth

Mirae Asset Large Cap Fund Direct Plan-Growth is one of the top picks under the Large Cap Mutual Funds category. It is of the best mutual funds to invest, as the fund nears 10 years of completion. The fund was started in January 2013, and since its inception, it has had an ultimate performance of  17.71% CAGR. The benchmark index for the fund is S&P BSE 100 India TRI

Here are the Stats, why we ranked them as the best mutual funds to invest in 2022

  • AUM (Asset Under Management – Rs. 31297 Crores
  • Expense Ratio – 0.54%
  • 5 Years Performance – 16.3%
  • Percentage of Equity Holding – 98.7%
  • Risk vs Category – Moderate Risk.

Axis Bluechip Fund Direct plan growth has an asset allocation of Equity (98.7%), and Cash (1.3%). The equity portfolio consists of various sectors like Financial (32.7%), Technology (17.4%), Energy (8.6%), Healthcare (7.5%), Construction (6.5%), Automobile (5.3%),   Engineering (55), Others (22.1%).

Here is the Risk Ratio of the Fund:

  • Standard Deviation – 20.98 vs 21.45 (Index)
  • Sharp Ratio – 0.73 vs 0.69 (Index)
  • Alpha – 0.96 vs 7.91 (Index)
  • Beta – 0.97 vs 1 (Index)
  • R2 – 98.79 vs 46.23 (Index)

Other Details of the Fund:

  • P/E – 25.62
  • P/B – 3.60
  • Top 5 Equities hold 38% of AUM
  • Top 20 Equities hold 70% of AUM
  • Exit Load – 1% if redeemed within 1 year
  • Stamp Duty – 0.005%
Pros
  • 5 Years Performance is higher than category average.
  • 17.71% returns since Inception, highest among the top large cap mutual funds in India
  • Expense Ratio is 0.54%, which is comparatively low.
Cons
  • Last 1 Year returns were low compared to the category average.
  • Moderate Risk compared to Category

Axis Midcap Fund - Direct Plan - Growth

Axis Midcap Fund Direct Plan-Growth is one of the top picks under the best Midcap Mutual Funds category. It is of the best mutual funds to invest, as the fund nears 10 years of completion. The fund was started in January 2013, and since its inception, it has had an ultimate performance of  19.96% CAGR. The benchmark index for the fund is S&P BSE Midcap TRI

Here are the Stats, why we ranked them as one of the top mutual funds in India

  • AUM (Asset Under Management – Rs. 16754.33 Crores
  • Expense Ratio – 0.47%
  • 5 Years Performance – 21.35%
  • Percentage of Equity Holding – 94.9%
  • Risk vs Category – Low Risk.

Axis Midcap Fund Direct plan growth has an asset allocation of Equity (94.9%), Debt (4.7%), and Cash (0.4%). The equity portfolio consists of various sectors like Financial (19.2%), Technology (17.3%), Chemicals (12.5%), Services (10.7%), Healthcare (7.2%), Automobile (6.7%), Consumer Durable (6.7%), Construction (5.1%), Others (14.6%).

Here is the Risk Ratio of the Fund:

  • Standard Deviation – 16.79 vs 21.61 (Index)
  • Sharp Ratio – 1.03 vs 0.53 (Index)
  • Alpha – 8.94 vs 7.56 (Index)
  • Beta – 0.73 vs 0.72 (Index)
  • R2 – 89.06 vs 19.95 (Index)

Other Details of the Fund:

  • P/E – 38.44
  • P/B – 6.45
  • Top 5 Equities hold 18% of AUM
  • Top 20 Equities hold 55% of AUM
  • Exit Load – 1% if redeemed within 1 year
  • Stamp Duty – 0.005%
  • Minimum SIP – Rs. 500 per month
Pros
  • 5 Years Performance is higher than category average.
  • 19.96% returns since Inception, highest among the top midcap mutual funds in India
  • Expense Ratio is 0.47%, which is comparatively low.
  • Low Risk compared to category
Cons
  • Last 1 Year returns were low compared to the category average.

Kotak Emerging Equity Fund - Direct - Growth

Kotak Emerging Equity Fund Direct Plan-Growth is one of the top picks under the best Midcap Mutual Funds category. It is of the best mutual funds to invest, as the fund nears 10 years of completion. The fund was started in January 2013, and since its inception, it has had an ultimate performance of  20.46% CAGR. The benchmark index for the fund is S&P BSE Midcap TRI

Here are the Stats, why we ranked them as one of the top mutual funds in India

  • AUM (Asset Under Management – Rs. 17756.31 Crores
  • Expense Ratio – 0.530%
  • 5 Years Performance – 17.33%
  • Percentage of Equity Holding – 96.3%
  • Risk vs Category – Moderate Risk.

Kotak Emerging Equity Fund Direct plan growth has an asset allocation of Equity (96.3%), and Cash (3.7%). The equity portfolio consists of various sectors like Engineering (17.1%), Chemical (15.1%), Financial (13.2%), Construction (11.7%), Consumer Durable (8.7%), Healthcare (7.3%), FMCG (6.2%), Others (20.7%).

Here is the Risk Ratio of the Fund:

  • Standard Deviation – 20.87 vs 21.61 (Index)
  • Sharp Ratio – 0.71 vs 0.53 (Index)
  • Alpha – 4.21 vs 7.56 (Index)
  • Beta – 0.94 vs 0.72 (Index)
  • R2 – 94.50 vs 19.95 (Index)

Other Details of the Fund:

  • P/E – 29.85
  • P/B – 4.38
  • Top 5 Equities hold 20% of AUM
  • Top 20 Equities hold 56% of AUM
  • Exit Load – 1% if redeemed within 1 year
  • Stamp Duty – 0.005%
  • Minimum SIP – Rs. 1000 per month
Pros
  • 5 Years Performance is higher than category average.
  • 17.33% returns since Inception
  • Expense Ratio is 0.53%, which is comparatively low.
Cons
  • Last 1 Year returns were low compared to the category average.
  • The fund has a moderate risk under last 5 years analysis

Nippon India Small Cap Fund Direct Growth

Nippon India Small Cap Fund Direct Plan-Growth is one of the top picks under the best Small Cap Mutual Funds in India. It is of the best mutual funds to invest, as the fund nears 10 years of completion. The fund was started in January 2013, and since its inception, it has had an ultimate performance of  24.80% CAGR. The benchmark index for the fund is S&P BSE Small Cap TRI

Here are the Stats, why we ranked them as one of the top mutual funds in India

  • AUM (Asset Under Management – Rs. 18933.35  Crores
  • Expense Ratio – 1.02%
  • 5 Years Performance – 20.09%
  • Percentage of Equity Holding – 98.1%
  • Risk vs Category – High Risk.

Nippon India Small Cap Fund Direct plan growth has an asset allocation of Equity (98.1%), and Cash (1.9%). The equity portfolio consists of various sectors like Engineering (13.5%), Chemical (13.3%), Technology (11.8%), FMCG (10.8%), Financial (9.8%), Construction (7.2%), Automobile (6.5%), Services (5.5%), Others (21.7%).

Here is the Risk Ratio of the Fund:

  • Standard Deviation – 24.65 vs 25.03 (Index)
  • Sharp Ratio – 0.79 vs 0.61 (Index)
  • Alpha – 4.52 vs 11.13 (Index)
  • Beta – 0.97 vs 0.8 (Index)
  • R2 – 97.75 vs 18.37 (Index)

Other Details of the Fund:

  • P/E – 25.06
  • P/B – 3.13
  • Top 5 Equities hold 13% of AUM
  • Top 20 Equities hold 38% of AUM
  • Exit Load – 1% if redeemed within 1 year
  • Stamp Duty – 0.005%
  • Minimum SIP – Rs. 100 per month
Pros
  • 5 Years and 3 years Performance is higher than category average.
  • 24.8% returns since Inception, which is the highest among category
  • Well Diversified Portfolio
  • You can start Investing from Rs. 100 per month via SIP
Cons
  • Last 1 Year returns were low compared to the category average.
  • Expense ratio is moderately high compared to category. The Expense ratio is 1.02%
  • The fund has high risk under last 5 years analysis

DSP Small Cap Fund Direct Growth

DSP Small Cap Fund Direct Plan-Growth is one of the top picks under the best Small Cap Mutual Funds in India. It is of the best mutual funds to invest, as the fund nears 10 years of completion. The fund was started in January 2013, and since its inception, it has had an ultimate performance of  21.69% CAGR. The benchmark index for the fund is S&P BSE Small Cap TRI

Here are the Stats, why we ranked them as one of the top mutual funds in India

  • AUM (Asset Under Management – Rs. 18933.35  Crores
  • Expense Ratio – 0.99%
  • 5 Years Performance – 13.74%
  • Percentage of Equity Holding – 97.2%
  • Risk vs Category – Moderately low.

DSP Small Cap Fund Direct plan growth has an asset allocation of Equity (97.2%), and Cash (2.8%). The equity portfolio consists of various sectors like Chemical (20.5%), Construction (9.8%), Textiles (9.4%), Automobile (9.2%), FMCG (8.4%), Services (8.0%), Metals (7.2%), Consumer Durable (7%), Financial (6.5%), Healthcare (6.2%), Others (7.7%).

Here is the Risk Ratio of the Fund:

  • Standard Deviation – 23.89 vs 25.03 (Index)
  • Sharp Ratio – 0.58 vs 0.61 (Index)
  • Alpha – (-) 0.48 vs 11.13 (Index)
  • Beta – 0.93 vs 0.8 (Index)
  • R2 – 95.62 vs 18.37 (Index)

Other Details of the Fund:

  • P/E – 19.37
  • P/B – 3.11
  • Top 5 Equities hold 18% of AUM
  • Top 20 Equities hold 52% of AUM
  • Exit Load – 1% if redeemed within 1 year
  • Stamp Duty – 0.005%
  • Minimum SIP – Rs. 500 per month
Pros
  • 5 Years and 3 years Performance is higher than category average.
  • 21.69% returns since Inception, which is the highest among category
  • Well Diversified Portfolio
  • You can start Investing from Rs. 500 per month via SIP
  • Expense Ratio is 0.99%
  • Low Risk profile compared to Category in the last 5 years analysis
Cons
  • Last 1 Year returns were low compared to the category average.
  • Alpha for last 5 years is in Negative

Quant Active Fund Direct Plan Growth

Quant Active Fund Direct Plan-Growth is one of the top picks under the best Multi Cap Mutual Funds in India. It is of the best mutual funds to invest, as the fund nears 10 years of completion. The fund was started in January 2013, and since its inception, it has had an ultimate performance of  20.43%% CAGR. The benchmark index for the fund is S&P BSE 500 India TRI

Here are the Stats, why we ranked them as one of the best mutual funds to invest in India

  • AUM (Asset Under Management – Rs. 1719.74  Crores
  • Expense Ratio – 0.58%
  • 5 Years Performance – 23.44%
  • Percentage of Equity Holding – 96.8%
  • Risk vs Category (5 Years)– Moderately High Risk.

Quant Active Fund Direct plan growth has an asset allocation of Equity (96.8%), and Cash (3.2%). The equity portfolio consists of various sectors like Services (16.1%), FMCG (14.7%), Construction (14.5%), Financial (14%), Metals (13%), Healthcare (7.2%), Chemicals (6%), Energy (5.8%), Others (8.7%).

Here is the Risk Ratio of the Fund:

  • Standard Deviation – 23.53 vs 21.86 (Index)
  • Sharp Ratio – 1.21 vs 0.74 (Index)
  • Alpha – 13.25 vs 9.22 (Index)
  • Beta – 0.95 vs 1.02 (Index)
  • R2 – 77.95 vs 46.37 (Index)

Other Details of the Fund:

  • P/E – 16.88
  • P/B – 2.59
  • Top 5 Equities hold 31% of AUM
  • Top 20 Equities hold 70% of AUM
  • Exit Load – 1% if redeemed within 1 year
  • Stamp Duty – 0.005%
  • Minimum SIP – Rs. 1000 per month
Pros
  • 5 Years and 3 years Performance is higher than category average.
  • 20.43% returns since Inception, which is the highest among category
  • Well Diversified Portfolio
  • Expense Ratio is 0.58%, which is considerably low
Cons
  • Last 1 Year returns were low compared to the category average.
  • Moderately High Risk compared to category (5 Years Analysis)

Baroda Multi Cap Fund Direct Plan Growth

Baroda Multi Cap Fund Direct Plan-Growth is one of the top picks under the best Multi Cap Mutual Funds in India. It is of the best mutual funds to invest, as the fund nears 10 years of completion. The fund was started in January 2013, and since its inception, it has had an ultimate performance of  14.54% CAGR. The benchmark index for the fund is S&P BSE 500 India TRI

Here are the Stats, why we ranked them as one of the best mutual funds to invest in India

  • AUM (Asset Under Management – Rs. 1154.05  Crores
  • Expense Ratio – 1.54%
  • 5 Years Performance – 14.81%
  • Percentage of Equity Holding – 98.8%
  • Risk vs Category (5 Years)– Low Risk.

Baroda Multi Cap Fund Direct plan growth has an asset allocation of Equity (98.8%), and Cash (1.2%). The equity portfolio consists of various sectors like Financial (21.9%), Technology (18.6%), Healthcare (12.4%), Services (8.2%), Energy (7.5%), Automobile (6.6%), Construction (6.6%), Construction (6.6%), Chemicals (5.1%), Others (13%).

Here is the Risk Ratio of the Fund:

  • Standard Deviation – 18.82 vs 18.88 (Index)
  • Sharp Ratio – 0.69 vs 0.64 (Index)
  • Alpha – 1.43 vs 8.05 (Index)
  • Beta – 0.91 vs 0.77 (Index)
  • R2 – 91.44 vs 30.18 (Index)

Other Details of the Fund:

  • P/E – 29.56
  • P/B – 3.53
  • Top 5 Equities hold 25% of AUM
  • Top 20 Equities hold 60% of AUM
  • Exit Load – 1% if redeemed within 1 year
  • Stamp Duty – 0.005%
  • Minimum SIP – Rs. 500 per month
Pros
  • 5 Years and 3 years Performance is higher than category average.
  • 14.54% returns since Inception.
  • 5 years risk ratio is low compared to category
Cons
  • Last 1 Year returns were low compared to the category average.
  • Expense Ratio is 1.54%, which is high among is the category (Direct Plan)

Axis Long Term Equity Direct Plan Growth

Axis Long Term Equity Direct Plan-Growth is one of the top picks under the best ELSS Mutual Funds in India. It is of the best mutual funds to invest, as the fund nears 10 years of completion.

The fund was started in January 2013, and since its inception, it has had an ultimate performance of  19.01% CAGR. The benchmark index for the fund is S&P BSE 200 India TRI and comes with a minimum 3-year lock-in period.

Here are the Stats, why we ranked them as one of the best mutual funds to invest in India

  • AUM (Asset Under Management – Rs. 32136  Crores
  • Expense Ratio – 0.75%
  • 5 Years Performance – 16.39%
  • Percentage of Equity Holding – 97.3%
  • Risk vs Category (5 Years)– Moderately Low Risk.

Axis Long Term Equity Direct plan growth has an asset allocation of Equity (97.3%), Debt (2.3%), and Cash (0.5%). The equity portfolio consists of various sectors like Financial (33.4%), Services (16.3%), Technology (12.9%), Chemicals (9.3%), Healthcare (7.6%), Automobile (5.6%), FMCG (5.1%), Others (9.8%).

Here is the Risk Ratio of the Fund:

  • Standard Deviation – 18.03 vs 18.5 (Index)
  • Sharp Ratio – 0.73 vs 0.65 (Index)
  • Alpha – 2.31 vs 7.96 (Index)
  • Beta – 0.90 vs 0.77 (Index)
  • R2 – 86.81 vs 31.26 (Index)

Other Details of the Fund:

  • P/E – 44.41
  • P/B – 6.58
  • Top 5 Equities hold 40% of AUM
  • Top 20 Equities hold 90% of AUM
  • Exit Load – 1% if redeemed within 1 year
  • Stamp Duty – 0.005%
  • Minimum SIP – Rs. 500 per month
Pros
  • 5 Years and 3 years Performance is higher than category average.
  • 19.01% returns since Inception.
  • 5 years risk ratio is Moderately low compared to category
  • Expense Ratio is 0.75%, that is considerably low
Cons
  • Last 1 Year returns were low compared to the category average.
  • P/B, and P/E is too High

Mirae Asset Tax Saver Fund Direct Plan Growth

Mirae Asset Tax Saver Fund Direct Plan-Growth is one of the top picks under the best ELSS Mutual Funds in India. It is of the best mutual funds to invest, as the fund completed 7 years in the industry. The fund was started in 2015, and since its inception, it has had an ultimate performance of  20.76% CAGR. The benchmark index for the fund is S&P BSE 200 India TRI

Here are the Stats, why we ranked them as one of the best mutual funds to invest in India

  • AUM (Asset Under Management – Rs. 10971.85  Crores
  • Expense Ratio – 0.41%
  • 5 Years Performance – 19.45%
  • Percentage of Equity Holding – 99.6%
  • Risk vs Category (5 Years)– Moderate Risk.

Mirae Asset Tax Saver Fund Direct plan growth has an asset allocation of Equity (99.6%), and Cash (0.4%). The equity portfolio consists of various sectors like Financial (35.3%%), Technology (14.5%), Energy (8.1%), Automobile (7.7%), Construction (6.2%), Healthcare (5.7%), FMCG (5.3%), Others (17.2%).

Here is the Risk Ratio of the Fund:

  • Standard Deviation – 18.94 vs 18.5 (Index)
  • Sharp Ratio – 0.89 vs 0.65 (Index)
  • Alpha – 4.69 vs 7.96 (Index)
  • Beta – 1.00 vs 0.77 (Index)
  • R2 – 96.82 vs 31.26 (Index)

Other Details of the Fund:

  • P/E – 25.29
  • P/B –3.64
  • Top 5 Equities hold 32% of AUM
  • Top 20 Equities hold 64% of AUM
  • Exit Load – 1% if redeemed within 1 year
  • Stamp Duty – 0.005%
  • Minimum SIP – Rs. 500 per month
Pros
  • 5 Years and 3 years Performance is higher than category average.
  • 20.96% returns since Inception, that is highest among the category
  • 5 years risk ratio is Moderate compared to category
  • Expense Ratio is 0.45%, lowest among the category
Cons
  • Last 1 Year returns were low compared to the category average.

Canara Robeco Equity Hydrid Fund Direct Plan Growth

Canara Robeco Equity Hybrid Fund Direct Plan-Growth is one of the top picks under the best Hybrid Mutual Funds in India. It is of the best mutual funds to invest, as the fund nears 10 years of completion. The fund was started in January 2013, and since its inception, it has had an ultimate performance of  15% CAGR. The benchmark index for the fund is CRISIL Hybrid 35+65 – Agg TRI.

Here are the Stats, why we ranked them as one of the best mutual funds to invest in India

  • AUM (Asset Under Management – Rs. 7406.91  Crores
  • Expense Ratio – 0.66%
  • 5 Years Performance – 14.77%
  • Percentage of Equity Holding – 70.9%; Debt holding – 24.6%
  • Risk vs Category (5 Years)– Low Risk

Canara Robeco Equity Hybrid Fund Direct plan growth has an asset allocation of Equity (70.9%), Debt (24.6%), and Cash (4.5%). The equity portfolio consists of various sectors like Financial (32.5%), Technology (15.2%), Automobile (9.7%), Construction (8.9%), Healthcare (7.6%), Energy (5.5%), Others (9.8%).

The Debt Allocation holds Sovereign (46.6%), Financials (21.7%), Energy (6.7%), Others (24.9%).

Other Details of the Fund:

  • P/E – 33.73
  • P/B – 4.38
  • Top 5 Equities hold 23% of AUM
  • Top 20 Equities hold 53% of AUM
  • Exit Load – 1% if redeemed within 1 year
  • Stamp Duty – 0.005%
  • Minimum SIP – Rs. 1000 per month
Pros
  • 5 Years and 3 years Performance is higher than category average.
  • 15% returns since Inception, that is highest among the category
  • 5 years risk ratio is Low
  • Expense Ratio is 0.66%, considerably low
Cons
  • Last 1 Year returns were low compared to the category average.

Mirae Asset Hybrid Equity Fund Direct Plan Growth

Mirae Asset Hybrid Equity Fund Direct Plan-Growth is one of the top picks under the best Hybrid Mutual Funds in India. It is of the best mutual funds to invest, as the fund has completed 7 years. The fund was started in 2015, and since its inception, it has had an ultimate performance of  13.85%% CAGR. The benchmark index for the fund is CRISIL Hybrid 35+65 – Agg TRI.

Here are the Stats, why we ranked them as one of the best mutual funds to invest in India

  • AUM (Asset Under Management – Rs. 6541.6  Crores
  • Expense Ratio – 0.41%
  • 5 Years Performance – 14.3%
  • Percentage of Equity Holding – 74.7%; Debt holding – 18.1%
  • Risk vs Category (5 Years) – Moderately Low Risk

Mirae Asset Hybrid Equity Fund Direct plan growth has an asset allocation of Equity (74.7%), Debt (18.1%), and Cash (7.2%). The equity portfolio consists of various sectors like Financial (37.3%), Technology (14%), Energy (8.2%), Automobile (7.2%), Healthcare (7.1%), Construction (6.3%), FMCG (5.8%), Others (14.1%).

The Debt Allocation holds Financials (42.4%), Sovereign (32.1%), Others (25.5%).

Other Details of the Fund:

  • P/E – 23.94
  • P/B – 3.43
  • Top 5 Equities hold 24% of AUM
  • Top 20 Equities hold 53% of AUM
  • Exit Load – 1% if redeemed within 1 year
  • Stamp Duty – 0.005%
  • Minimum SIP – Rs. 1000 per month
Pros
  • 5 Years and 3 years Performance is higher than category average.
  • 13.85% returns since Inception.
  • 5 years risk ratio is Moderately Low
  • Expense Ratio is 0.41, lowest among the category
Cons
  • Last 1 Year returns were low compared to the category average.

ICICI Prudential All Season Bond Fund Direct Plan Growth

ICICI Prudential All Season Bond Fund Direct Plan-Growth is one of the tops picks under the best Debt Mutual Funds in India. It is of the best mutual funds to invest in, as the fund nears 10 years of completion. The fund was started in January 2013, and since its inception, it has had an ultimate performance of  10.38% CAGR. The benchmark index for the fund is CRISIL composite bond fund TRI.

Here are the Stats, why we ranked them as one of the best mutual funds to invest in India

  • AUM (Asset Under Management – Rs. 6512 Crores
  • Expense Ratio – 0.61%
  • 5 Years Performance – 8.53%
  • Percentage of Debt holding – 83.7%
  • Risk vs Category (5 Years)– Moderately Low Risk

ICICI Prudential All Season Bond Fund Direct plan growth has an asset allocation of Debt (83.7%), and Cash (16.3%). The Debt Allocation holds Sovereign (51%), Financials (14.8%), Construction (11%), Others (23.2%).

Other Details of the Fund:

  • Top 5 Equities hold 16% of AUM
  • Top 20 Equities hold 70% of AUM
  • Exit Load – 1% if redeemed within 1 year
  • Stamp Duty – 0.005%
  • Minimum SIP – Rs. 100 per month
Pros
  • 5 Years and 3 years Performance is higher than category average.
  • 10.28% returns since Inception, highest among the category
  • 5 years risk ratio is Moderately Low
  • Expense Ratio is 0.61, lowest among the category
  • You can start investing from Rs. 100 per month through SIP
Cons
  • Returns are not on par to equity funds.

ICICI Prudential Credit Risk Fund Direct Plan Growth

ICICI Prudential Credit Risk Fund Direct Plan-Growth is one of the top picks under the best Debt Mutual Funds in India. It is of the best mutual funds to invest, as the fund nears 10 years of completion. The fund was started in January 2013, and since its inception, it has had an ultimate performance of  9.28% CAGR. The benchmark index for the fund is CRISIL composite bond fund TRI.

Here are the Stats, why we ranked them as one of the best mutual funds to invest in India

  • AUM (Asset Under Management – Rs. 8436.03 Crores
  • Expense Ratio – 0.87%
  • 5 Years Performance – 8.58%
  • Percentage of Debt holding – 87%
  • Risk vs Category (5 Years) – Low Risk

ICICI Prudential Credit Risk Fund Direct plan growth has an asset allocation of Debt (87.8%), Cash (10.8%), and Equity (2.2%). The Debt Allocation holds Financials (23.8%), Construction (21.1%), Energy (8.3%), Services (7.9%), Sovereign (7.9%) Others (31.2%).

Other Details of the Fund:

  • Top 5 Equities hold 16% of AUM
  • Top 20 Equities hold 43% of AUM
  • Exit Load – 1% if redeemed within 1 year
  • Stamp Duty – 0.005%
  • Minimum SIP – Rs. 100 per month
Pros
  • 5 Years and 3 years Performance is higher than category average.
  • 9.28% returns since Inception, highest among the category
  • 5 years risk ratio is Low
  • Expense Ratio is 0.87, considerably low.
  • You can start investing from Rs. 100 per month through SIP
Cons
  • 1 Year return is low compared to category average.

Aditya Birla Sun life Securities Fund Direct Plan Growth

Aditya Birla Sun Life Securities Fund Direct Plan-Growth is one of the top picks under the best GILT Mutual Funds in India. It is of the best mutual funds to invest, as the fund nears 10 years of completion. The fund was started in January 2013, and since its inception, it has had an ultimate performance of  9.55% CAGR. The benchmark index for the fund is ICICI Securities Mibex TRI.

Here are the Stats, why we ranked them as one of the best mutual funds to invest in India

  • AUM (Asset Under Management – Rs. 1056.72 Crores
  • Expense Ratio – 0.29%
  • 5 Years Performance – 8.62%
  • Percentage of Debt holding – 100%
  • Risk vs Category (5 Years) – Moderately Low Risk

Aditya Birla Sun life Securities Fund Direct plan growth has an asset allocation of Debt (100%). The Debt Allocation holds Sovereign (91.2%) Others (8.8%).

Other Details of the Fund:

  • Top 5 Equities hold 40% of AUM
  • Top 20 Equities hold 77% of AUM
  • Exit Load – 1% if redeemed within 1 year
  • Stamp Duty – 0.005%
  • Minimum SIP – Rs. 1000 per month
Pros
  • 5 Years and 3 years Performance is higher than category average.
  • 9.28% returns since Inception, highest among the category
  • 5 years risk ratio is Low
  • Expense Ratio is 0.29, lowest among the category.
Cons
  • 1 Year return is low compared to category average.

SBI Magnum GILT Fund Direct Plan Growth

SBI Magnum GILT Fund Direct Plan-Growth is one of the top picks under the best GILT Mutual Funds in India. It is of the best mutual funds to invest, as the fund nears 10 years of completion. The fund was started in January 2013, and since its inception, it has had an ultimate performance of  9.12% CAGR. The benchmark index for the fund is ICICI Securities Mibex TRI.

Here are the Stats, why we ranked them as one of the best mutual funds to invest in India

  • AUM (Asset Under Management – Rs. 3602.08 Crores
  • Expense Ratio – 0.47%
  • 5 Years Performance – 8.05%
  • Percentage of Debt holding – 93%
  • Risk vs Category (5 Years) – Moderately Low Risk

SBI Magnum GILT Fund Fund Direct plan growth has an asset allocation of Debt (93%), and Cash (7%). The Debt Allocation holds Sovereign (65.8%), Financial (22.4%), Others (11.8%).

Other Details of the Fund:

  • Top 5 Equities hold 64% of AUM
  • Top 20 Equities hold 88% of AUM
  • Exit Load – 1% if redeemed within 1 year
  • Stamp Duty – 0.005%
  • Minimum SIP – Rs. 500 per month
Pros
  • 5 Years and 3 years Performance is higher than category average.
  • 9.12% returns since Inception.
  • 5 years risk ratio is Moderately Low.
  • Expense Ratio is 0.47, comparatively low among the category.
Cons
  • 1 Year return is low compared to category average.

Who Should Invest in Mutual Funds?

As the investments are made over top companies, Government, and corporate bonds of India, which are stable and well-established. Most of the companies in these mutual fund portfolio produce a standard rate of return in terms of revenue, profit, dividend to shareholders.

So, investing in these companies produce variable returns and risk depending on the type of mutual fund you choose to invest.

Mutual funds in India are suitable for investors who aspire to invest in the equity market and bond market with relatively low to high risk. As you have seen the best mutual funds to invest in India, the risk is between low to moderate in more than 50% of the funds. 

At the same time, the average 10 years return as per CAGR is around 15%. Let us assume, that you invest Rs. 10,000 as SIP (systematic investment plan) in any of the above mutual funds. The return after 10 years will be 27.9 lakhs, and the wealth gain is 15.9 lakhs. This can’t be possible by fixed deposits or postal saving schemes.

In fact, the above mutual funds to invest in India would have made you understand, even the worst performance, high-risk mutual funds have produced minimum 9 to 10 % CAGR in the last 10 years.

The only thing, you should keep in mind is to be a stayed investor. Don’t care about market price fluctuations, market news, and keep investing via SIP. If you can do this consistently with patients, large cap mutual fund should be a piece of your asset allocation.

Risk factors of Mutual Funds in India?

Even though the risk involved in mutual funds vary from low and high , there is always a risk associated with investments. Let’s brief in detail.

1. Equity Market Risk:

Stock markets are always prone to risk, fluctuation, bear, and Bull at any time. I mentioned Bull at last because, even after the market plunges to 30-50%, it rises more substantially like a bull to 100%.

2. Concentration Risk:

When a fund manager parks significant funds in a particular sector, you can make your investments at rest at any time. Few large cap mutual funds concentrate on one or two industries. When these two sectors plunge continuously, this risks the investors, and the fund may face a considerable sell-off.

3. Liquidity Risk:

There is no liquidity pressure in Mutual Funds, as you can redeem the funds as per your need. The amount will be transferred to your account within 2 working days.

When there is no buyer for the current market price for stocks in your portfolio, automatically, the price has to come down for liquidity. Every Mutual fund holds 1-5% of the total AUM as cash, and it is was paid to you during redemption.

When more investors redeem, this cash holding will exhaust, and the fund manager has to sell the securities to pay you. This is why we suggest investing in mutual funds holding an AUM of more than 1000 crores.

4. Interest rate Risk:

Interest rates fluctuate depending on whether or not issuers have access to credit and whether or not there is demand in the market. Therefore, an increase in the interest rate may adversely affect the security’s price.

5. Credit Risk:

When the security issuer does not pay interest or return the principal at maturity, it creates a credit risk. As mutual funds hold some percentage of bonds or debt materials, this fund can be prone to credit risk.

Frequently Asked Questions (FAQ)

What are the Best mutual funds to invest in India?

The best mutual funds to invest in India are Axis Blue Chip Funds, Mirae Asset Large Cap Funds, Axis Mid Cap Funds, Kotak Emerging Equity Fund, Nippon India Small Cap Fund, DSP Small Cap Fund, Quant Active Fund, Baroda Multi Cap Funds, Axis Long Term Equity Fund, Mirae Asset Tax Saver Fund, under Equity Mutual Funds.

The best Hybrid Mutual Funds are Canara Robeco Equity Hybrid Fund, and  Mirae Asset Hybrid Equity fund.

The best Debt Mutual Funds to invests are ICICI All Season Bond Fund,  ICICI Credit Risk Fund, Aditya Birla Government Securities Fund, and SBI Magnum GILT Fund.

Be wise in investing only in Direct and Growth plans,

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